Africa is one of the most biodiverse places on Earth, yet the continent captures less than 10% of the economic value of its own biomass. For too long, much of Africa’s biomass has been exported in raw or low-value forms, before returning as higher-value goods manufactured elsewhere. This matters because processed agricultural goods typically earn three to five times the margin of raw commodities, meaning the greatest economic gains are often captured far from where the biomass is produced or harvested. The result is an economic paradox; the continent is rich in biomass but much of the wealth it generates is created elsewhere.
This is precisely the case for growing Africa’s bioeconomy: to stop exporting raw potential and start capturing more value locally. Our new report, Investing in Southern Africa’s bioeconomy, frames the bioeconomy as an economic opportunity to turn renewable biological resources into higher-value products, industries and jobs, helping countries move beyond extractive, low-value exports towards more diversified, innovation-driven value chains. It explores six sectors across agriculture, biotechnology, bioenergy, the blue economy, waste and wildlife, and identifies where more value can be captured locally.
The case for seizing this opportunity is becoming more urgent. A super El Niño and fertiliser shortages linked to disruption in the Strait of Hormuz are putting food systems, public finances and livelihoods under greater pressure. These shocks also expose how heavily Africa depends on imported, carbon-intensive inputs. Building bio-based industries can reduce those dependencies, strengthen domestic productive capacity and make economies more resilient to future shocks.
Africa’s bioeconomy is already happening
Africa does not need to build a bioeconomy from scratch. It is already woven into the natural capital and biological systems that shape livelihoods, trade and economic activity across the continent. Agriculture contributes nearly one-third of Africa’s GDP and employs over 40% of the workforce. Policy is catching up too. The East African Community is implementing a regional bioeconomy strategy, while Southern African governments have committed to developing one.
The task now is to shape where the economic gains are captured across Africa’s bioeconomy. Today, production remains concentrated in raw or minimally processed goods, while much of the processing, manufacturing and branding happens elsewhere. Africa generates the biological resources, but captures only a small share of the wealth created from them.
The bioeconomy as a growth and resilience strategy
The global bioeconomy is already worth an estimated US$4-5 trillion and is projected to reach US$30 trillion by 2050. With around 60% of the world’s remaining uncultivated arable land, Africa is well placed to capture a much larger share of that value. The African Development Bank estimates that expanding the circular bioeconomy alone, where biological resources are kept in use for as long as possible and waste is cycled back into the system as an input, could add 2.2% to Africa’s GDP and create 11 million jobs.
Agriculture shows both the challenge and the opportunity most clearly. Africa supplies much of the world’s cocoa, shea, cashew, baobab and argan oil as raw commodities, while much of the processing and manufacturing takes place elsewhere. African economies therefore miss out on a large share of the value, innovation and jobs those resources can generate. (For a deeper look at this dynamic, see our brief From agricultural production to bioeconomy value creation in Africa).
Some governments are starting to push back. This year, Ghana introduced a landmark 10-year ban on raw rubber exports, signalling a clear shift towards prioritising value addition and a broader ambition to move from raw material exporter to industrial processor.
This year’s fertiliser crisis shows exactly what is at stake. Many African farmers rely on imported synthetic and fossil-fuel based fertilisers, leaving them exposed to global price and supply shocks. Urea prices rose by 80% in just two months this spring. Yet the raw materials for an alternative are already on the continent. Crop residues, organic waste and seaweed can be processed locally into biofertilisers that cut import bills, ease pressure on foreign exchange and keep jobs at home. In South Africa, a seaweed-based biostimulant has boosted table grape yields by up to 27%.
The cost of inaction is visible too. Africa loses an estimated US$4 billion a year through post-harvest losses in grains alone, value that could be captured through better storage, agro-processing and market access.
Kelp, insects, ethanol: bio-based businesses already proving the model
For biological resources, value addition means transforming raw materials locally into higher-value, lower-carbon products. Agricultural and organic waste that is now burned or dumped can become biofertilisers and biostimulants, replacing costly imports. Farm residues and used cooking oil can be turned into biofuels. Maize and sugarcane can become bioplastics and biochemicals in place of imported petrochemicals, while seaweed, kelp and algae, now mostly exported dried, can be processed into cosmetics and nutraceuticals. In each case, the jobs and income stay in Africa.
Across the continent, bio-based businesses are already showing what is possible. South Africa’s Kelpak has turned wild Atlantic kelp into plant biostimulants since 1978 and now sells in more than 80 countries. In Kenya, Regen Organics turns organic waste into insect protein and biofertiliser, replacing imported soy and fishmeal. In Zimbabwe, the Chisumbanje plant produces around 40 million litres of ethanol a year from sugarcane, with an annual target of 120 million litres, cutting fuel imports and saving foreign exchange.
Five priorities for growing Africa’s bioeconomy
Africa’s bioeconomy is at an inflection point, with growing political momentum but limited investment at scale. Biomass is already being grown, harvested and traded. Whether that activity builds African industries and jobs, or simply supplies raw material for someone else’s value chain, depends on how finance, policy, knowledge and markets are organised.
1. Build investable pipelines
Capital is present but not deployable, because processing and bio-manufacturing projects are often too fragmented for investors to back. Small and medium-sized enterprises make up 90% of African businesses, yet receive less than 20% of formal financing. Better project preparation can turn promising bio-based businesses into bankable investments, with local capital leading and international investors following.
2. Make agriculture the entry point for value addition
Agriculture is still seen mainly as a source of livelihoods rather than a platform for industry. Mapping bio-based value webs shows how much more value a single crop can create. Sugarcane can yield sugar, bioethanol and bioplastics, while its waste becomes biofertiliser, energy and animal feed.
3. Build bioindustrial clusters and corridors
The transport corridors planned for minerals can also carry biomass to agro-processing hubs and biorefineries. This keeps processing, jobs and economic value on the continent. With intra-African trade at just 15% of the total, regional value chains have huge room to grow.
4. Link science, finance and enterprise
Africa’s scientific output is growing by 8.7% a year, but too little of it is translated into commercial products. Stronger links between universities and industry, backed by finance designed around whole value chains, can turn research into bio-based enterprises, with smallholders and SMEs at the centre.
5. Coordinate through regional bioeconomy strategies
The bioeconomy spans multiple sectors, yet responsibility remains fragmented across ministries, institutions and markets. Treating it as a whole-of-government strategy, backed by regional frameworks that prioritise value addition and align standards, can give investors confidence and drive green industrialisation at a scale no single country could achieve alone.
Beyond political momentum: creating the conditions for investment
Across Africa, the case for adding value at home is no longer in question. Governments are increasingly clear that exporting raw resources means exporting jobs, revenue and opportunity. The political will for growing the bioeconomy is there. What is needed now is clearer prioritisation, stronger regional coordination and investable strategies that can turn that ambition into local processing and bio-based industries, giving investors the confidence and direction to deploy capital at scale.
Explore the series
Investing in Southern Africa’s bioeconomy
Our flagship report developed with support from the African Climate Foundation, The Nature Conservancy, African Leadership University and auctusESG, examines how greater coordination across the Southern African Development Community can help transform biological resources into higher-value products, industries and jobs. Read the report →
The case for a regional bioeconomy strategy in Southern Africa
Why regional coordination is essential for building scale, aligning standards and creating the conditions for investment. Read the brief →
From agricultural production to bioeconomy value creation in Africa
How African economies can move further up agricultural value chains and retain more of the economic gains generated from what they already produce. Read the brief →
Photo source: Kelpak.
